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COPYRIGHT 2006 Voxant, Inc.
Original Source: CNBC/DOW JONES BUSINESS VIDEO ANALYST INTERVIEW
LARRY KUDLOW, CNBC ANCHOR: On this evening`s program, so the Fed shows the consensus route by raising its target rate a quarter point to 5.25 percent. Personally, I thought this was kind of a wuss-out. He flunked the monetary manhood test. Stocks loved it, but so did inflation-sensitive gold and commodities. And as usual, the Fed`s written statement was completely ambiguous leaving the door open to almost any future outcome: tightening, easing, pausing, invading the Middle East, who knows what! Do they know?
Joining me now, a blow out, all-star panel. We`ve got economist Ben Stein, author of "How Successful People Win." We`ve got former Federal Reserve governor Wayne Angell. We`ve got Mickey Levy, chief economist at Bank of America; John Ryding, chief U.S. economist at Bear Stearns; and Joe LaVorgna, chief bond man at Deutsche Bank.
Oh, my goodness, everybody is out there. I don`t know. John Ryding, you do some double duty on the network today and I appreciate that.
This is the after part. You were on before. I myself found this to be somewhat disappointing, gold rallied. Now, John, I know gold in the morning might have rallied. Israel is invading Gaza. There`s a lot of tensions in the Middle East. Political risk could have played a role. But gold is up almost $10 after the Fed announcement, John. It doesn`t seem like the kind of outcome they want. What`s your take?
JOHN RYDING, CHIEF U.S. ECONOMIST, BEAR STERNS: Well, it`s not the outcome I wanted. I noted that gold and commodities had peaked a day after the May 10 Fed meeting when the Fed moved a quarter point and sounded a bit more hawkish than they did today. And we had a very nice pullback. I really wanted to see that built upon in the reaction to this Fed meeting. And it does seem to me inflation that inflation expectations took a little twist higher as the Fed seemed to back pedal a little bit with...
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